Does Agnico Eagle Mines Still Offer Value After a 105% Surge in 2025?

• If you are wondering whether Agnico Eagle Mines is still good value after its huge run, you are not alone. This is exactly the question we will unpack.
• The stock has climbed to around $168.61, delivering an impressive 105.6% year to date and 118.5% over the last year, on top of substantial multi year gains of 243.3% over 3 years and 167.4% over 5 years.
• Recent market attention has centered on gold prices holding firm near multi year highs and ongoing geopolitical uncertainty, both of which tend to boost demand for high quality gold producers like Agnico. At the same time, investors are watching how the company integrates acquired assets and advances its key projects in Canada and elsewhere, seeing these as potential drivers of long term production growth and cash flow strength.
• Despite all that momentum, Agnico Eagle Mines only scores 1 out of 6 on our valuation checks today. We will walk through what different valuation methods are saying about the stock, and then finish with a more holistic way to think about its true long term value.

Agnico Eagle Mines scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Agnico Eagle Mines Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow model estimates what a business is worth by projecting its future cash flows and discounting them back to today's dollars. It aims to approximate the value of the underlying cash generation rather than the current market mood.

For Agnico Eagle Mines, the model starts with last twelve month free cash flow of about $3.48 billion and incorporates analyst forecasts for the next few years, such as around $5.04 billion in 2026. Beyond the explicit analyst horizon, Simply Wall St extrapolates cash flows, with projections drifting down toward roughly $2.59 billion by 2035 as growth moderates.

Using a 2 Stage Free Cash Flow to Equity framework, these projected cash flows are discounted back to arrive at an estimated intrinsic value of roughly $106.76 per share. With the stock trading near $168.61, the DCF implies the shares are about 57.9% above this intrinsic estimate. This suggests the market is paying a substantial premium for future growth and gold price optimism.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Agnico Eagle Mines may be overvalued by 57.9%. Discover 916 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Agnico Eagle Mines.

Approach 2: Agnico Eagle Mines Price vs Earnings

For profitable companies like Agnico Eagle Mines, the price to earnings ratio, or PE, is a practical way to judge value because it links what investors pay today with the earnings the business is actually generating. A higher PE can be justified when investors expect stronger, more reliable growth, while companies facing slower growth or higher risk usually deserve a lower, more cautious PE.

Agnico currently trades on a PE of about 24.6x, which is close to both the broader Metals and Mining industry average of roughly 24.5x and a peer group average near 25.1x. On the surface, that suggests the stock is broadly in line with the sector and its direct competitors rather than standing out as especially cheap or expensive.

Simply Wall St, however, goes a step further with its Fair Ratio, which estimates what a company’s PE should be after adjusting for its specific earnings growth outlook, risk profile, profit margins, industry and market cap. For Agnico, this Fair Ratio sits around 23.6x, a touch below the current 24.6x. That modest gap implies the shares are trading at a small premium to what those fundamentals might justify, pointing to a stock that looks slightly expensive rather than clearly mispriced.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Agnico Eagle Mines Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories you create about a company that connect your view of its future revenue, earnings and margins to a financial forecast and, ultimately, to a fair value estimate.

On Simply Wall St’s Community page, Narratives are an easy, guided tool used by millions of investors to spell out why they think a business will grow (or not), turn those assumptions into projected financials, and compare the resulting Fair Value to today’s share price to decide whether a stock looks like a buy, hold or sell.

Because Narratives are updated dynamically as new information like news, buybacks or earnings drops, they help you keep your thesis current instead of relying on a one off calculation that can go stale quickly.

For Agnico Eagle Mines, for example, one investor’s bullish Narrative might lean toward the higher analyst fair value range near about $209 per share, based on strong gold prices and execution on growth projects. A more cautious investor might anchor closer to the low case near roughly $66, highlighting gold price risk and potential project setbacks. Both perspectives can coexist and be compared transparently on the platform.

Do you think there's more to the story for Agnico Eagle Mines? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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